Bill would reduce top rate for ad tax to 5.3%

Banking

Hungaryʼs government submitted a bill to Parliament on Friday that would apply a 5.3% rate for the advertising tax on a tax base of more than HUF 100 mln. A 0% rate would be applied to a tax base up to HUF 100 mln, according to the bill. 

The bill would also lower the rate applied to taxable parties that order publication of advertising from 20% to 5%. A draft of the bill was earlier published on the governmentʼs website. Even before the draft was published, Cabinet chief János Lázár said that the government would propose reducing the top rate of the progressive tax from 50% to 5.3%.

German-owned media company RTL Group earlier complained to Brussels that its business in Hungary was the only one in the top bracket, which put it in a "structurally loss-making position". The bill was drafted "in the interest of closing a legal dispute, while weighing the possible consequences of protracted litigation", according to its justification. If approved, the legislation would come into force 31 days after publication. Revenue from the ad tax is targeted at HUF 6.6 bln in this yearʼs budget.

Hungary Account Deficit at EUR 561 mln in Q4 Debt

Hungary Account Deficit at EUR 561 mln in Q4

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic... Appointments

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic...

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.